Business Advisory Archive

The Impact of Revenue Recognition on M&A Transactions—What You Need to Know

Acquisitions are often priced based on earnings, which are directly impacted by revenues. During the course of financial due diligence for a potential acquisition, there are several considerations that merit close attention. One area, in particular, is the reporting of revenue by the target company. In this case, it is critical to understand how a business recognizes revenues and how its process aligns with industry standards and norms.

How Revenue Recognition Rules Affect Your Business Valuations

Are you aware of how the new revenue regulation rules might impact your business valuation? From strategic planning and gift tax reporting to shareholder and partnership dispute to divorce, there are myriad reasons to have a business valued.

SEC Publishes Framework Regarding Whether Digital Assets Are Securities

If you are an investor in a company which issues digital tokens to raise capital, the SEC has good news for you. In a recent letter, the SEC stated it will not take enforcement action against such a company.

M&A Stories – How to "Deal" with Unwelcome Surprises

Surprises are rarely good. There are many different emotions that come with the experience of surprise: fear, anxiety, and joy—to name a few. Deals can also cause the same emotions for a deal maker. The following are a few stories and some suggestions on how to avoid unpleasant surprises.

Guide for Software Companies Being Acquired by Private Equity

Software company founders and CEOs often get inquiries from private equity (PE) firms interested in striking a deal to acquire or invest in their company. Depending on the offer, this could be the perfect opportunity to take their company to the next level or to achieve an optimal exit. But how can they recognize such an opportunity? The answer to that question is, in part, what this article aims to provide.

Importance of Net Working Capital (NWC) in M&A

Is additional spending for legal and accounting fees post transaction worth resolving a working capital disagreement? How about the disruptive impact of management distractions and the related cost of a working capital dispute on operations? Buyers and sellers can avoid these potential challenges by performing a comprehensive net working capital analysis prior to closing a transaction.

Last Call for New Revenue Recognition Standards

Time is running out, but it’s not too late for private companies to get set for the new revenue recognition standards. The FASB’s guidance is effective in 2019 for annual reporting periods, and in 2020 for interim periods. While this gives private companies a bit more time before they have to report under the new standard, the time to act is now.

Technology's Balancing Act: 10 Tech Predictions for 2019

Over the past year, U.S. tech companies have been at the center of attention on a national and global stage. Whether it’s dealing with a growing number of regulations, or shoring up data privacy measures in response to heightened scrutiny, the industry now faces several critical questions. How the industry responds will dictate its fate in the years to come.

7 Simple Measures That Can Help Protect Against Internet Fraud

For years we have been hearing about major internet fraud schemes. The question is, are you taking some simple steps to protect yourself? Security breaches are not going away anytime soon, so it’s critical that you take some measures to secure your finances.

4 Essential Keys to Leadership for Fast-Growth Companies

Even businesses with the most growth potential will encounter challenges and have difficult decisions to make on the way to success. What’s the difference between those which maneuver successfully and those who get tangled up in the chaos? Leadership.

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